Middle East tensions weigh on Wall Street
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The news: US stocks ended lower as investors turned wary of geopolitical risks in the Middle East after Iran launched a salvo of missiles against Israel.
The numbers: Among the main indices: Dow Jones dropped 0.4%, the S&P 500 lost 0.9%, while the Nasdaq fell 1.53%. US Treasury yields also fell, while oil prices and gold rose following the escalation of the Middle East conflict.
The context: While the broader market fell, shares of energy companies rose along with US oil prices, which settled up 2.4%. Shares of Exxon Mobil gained 2.3%.
Defence stocks also rose, including Northrop Grumman, which rallied 3%, and Lockheed Martin up 3.6%. The S&P 500 aerospace and defense index climbed to a record high, while utilities were up 0.8%. Airline shares fell, including Delta Air Lines, which was down 1.6%.
Investors remain cautious ahead of US jobless claims data and monthly payrolls this week. They are also monitoring a port strike on the US East Coast and the Gulf Coast, halting the flow of about half the nation's ocean shipping.
What they said: "If we do see further escalation I could see continued market weakness because we just don't know how far this is going to go," Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia told Reuters.
The source: Reuters
